Measuring and Managing Positive and Negative Externalities of New Business Creation: Toward Sustainable Entrepreneurial Ecosystems

Abstract

The creation of new businesses is a fundamental driver of contemporary economies, yet its societal impacts extend beyond the firm level. This study examines the positive and negative externalities generated by entrepreneurship, focusing on economic, social, and environmental dimensions. Drawing on recent empirical evidence, international reports, and policy analyses, a conceptual framework is proposed to assess and manage these externalities. Results indicate that while entrepreneurship stimulates job creation, innovation, and social inclusion, it can also generate precarious work, environmental pressures, and regional disparities. The study emphasizes the context-dependent nature of entrepreneurial impacts and provides recommendations for policymakers and stakeholders to maximize positive outcomes while mitigating negative effects. This research contributes to a better understanding of how entrepreneurship can promote sustainable and inclusive growth, aligned with the United Nations Sustainable Development Goals (SDG 8 and SDG 9).

JEL code: L26, Q01, H23, O38, J24

Paper Type: Theoretical Research